The oil and gas industry operates in a volatile environment. Fluctuations in the oil prices and the digitization boom in the industry has driven the demand for innovation and investment to meet the cost, ease the cost, and optimize the industry’s operations. The use of IoT can help streamline operations and help companies to enhance workflow and provide data useful in making decisions. Despite challenges in deploying IoT solutions, investment in innovation continues as oil and gas companies attempt to be more quick, efficient and productive while reducing costs.

IoT is helping the oil and gas companies in attaining global presence. Embedded sensors, automation and connectivity with data communications can gather and provide operational data from remote locations, which helps the sensor manufactures understand the operations in an accurate and detailed manner. IoT also removes physical barriers so that the companies can reach remote locations.

The advantages of IoT technology for oil and gas are wide-ranging from equipment manufacturers to internet service providers. Adoption of IoT technology in the oil and gas industry results in increased productivity and sustainability. The shift towards the use of IoT in the oil and gas industry has been encouraged due to the falling cost of the sensors and the increasing availability of wireless network.

Some of the prominent players in the Global IoT in oil and gas market are CISCO Systems Inc., IBM, Intel, C3IoT, Microsoft, ABB Ltd., and General Electric Company among others.

Market Dynamics

Market Drivers

Increasing cyberattacks leveraging the spending on IoT in the oil and gas industry
Need of Increased Operational Efficiency
Scarcity of Skilled Labor

Market Restraints

Privacy and Security Concern
Obsolete Communication Infrastructure

Market Opportunities

Introduction of Next Generation Sensors, Edge Computing and Software in the Oil and Gas Industry
IoT based Smart Automation Using Drones in Oil and Gas Industry
Growth Opportunity in IoT Analytics Market